Just a month after its launch, Solana-based gambling platform Pump.fun suffered an exploit worth $2 million from smart contract vulnerabilities. Further investigation unearthed a shocking twist. The attacker has been doxxed and is a former employee who has allegedly abused a position of trust within the organization to embezzle approximately 12.3K SOL. The team assures that they have upgraded the contracts, and the TVL in the protocol remains safe.
The team redeployed the contracts. trading is live again with 0% trading fees for the next 7 days. you can safely create coins, buy and sell them coins that reached 100% between 15:21-17:00 UTC are in limbo, meaning that no one can trade them until LPs are deployed for them on Raydium to make users whole, the team will seed the LPs for each affected coin with an equal or greater amount of SOL liquidity that the coin had at 15:21 UTC within the next 24 hours. thank you to anyone who has lent a hand, and to the best community in the space for trusting us Solana shitcoins are back, and greater than ever
On-chain sleuths detailed the onslaught. The attacker borrowed Solana tokens to buy new tokens for Pump.fun without actually needing them—called flash loans—illegally, obtaining the key to Pump.fun’s service account, thus disrupting the process of listing these tokens on trading platforms. This, in turn, restricted people from trading these new tokens as intended. Additionally, there are rumors that this exploit has cost Pump.fun a huge loss of around $80 million. However, the platform has so far not acknowledged that.
Solana’s Pump.fun Drama Escalates
On top of this economic exploit, there is also a disgruntled former employee publicly attacking Pump.fun on Twitter. Lookonchain delved further into his post, which read, “The founders withdrew $2 million from the Treasury yesterday. They should be the ones to pay for it.” The amount he was exploited for happened to be around $2 million. It seems to be the reason for the attack, as the investigative platform opined. This attack is a testing time for the Solana ecosystem and Pump.fun as it highlights vulnerabilities in the system, especially in the part of the crypto world focused on fun, meme-based tokens [meme coins].